Page 316 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(CNO—IA.040) (SIA 210 Managing the Internal Audit Function)
As per Standard on Internal Audit (SIA) 210 Managing the Internal Audit Function, the Internal Audit
Function performs a number of activities to achieve its objectives as outlined in its Charter (or Terms of
Engagement). A few of the critical activities are as follows:
1. Audit Planning: Define the overall plan, scope and methodology of the Internal Audit Function on a
periodic basis.

2A. Staff Management: Plan, acquire, engage and review the performance, training and development of
professional staff, talent and other resources to achieve its objectives.
2B. External Resources: Identify, source, engage and manage external experts and technical solutions, if
required.

3A. Audit Oversight: Oversee and monitor various audit assignments, their proper planning, execution,
reporting of findings and subsequent closure of reported observations.
3B. Quality Program: Develop and maintain a quality evaluation and improvement program.

4. Stakeholder Communication: Communicate and engage with all key stakeholders regarding progress and
achievement of objectives.

(CNO—IA.050) With respect to the accounting function and financial records of the organisation, the
responsibilities of an Internal Auditor include:
1A. Maintaining Independence: At all times, the internal auditor must maintain an independent status. The
Internal Auditor may face risks to independence when management seeks active business support from them.
1B. Operational Independence: To operate independently of the accounting staff and must not divest with
any of the responsibilities placed upon him. Not to involve in the performance of executive functions so that
the objective outlook doesn't get obscured by vested interests.

2A. Stay informed: To associate closely with management and stay informed about all important occurrences,
events, and changes in business policies.
2B. Internal Control Adequacy: To ascertain adequacy of system of internal control by a continuous
examination of accounting procedures, receipts and disbursements, and to provide safeguards against
misappropriation of assets.
2C. Highlight deficiencies: To observe facts and situations and notify authorities; critically appraise
management policies and highlight deficiencies.

3. Advisory Role: Apart from assurance on internal controls, the Internal Auditor might provide advisory
inputs on governance activities like risk management, monitoring statutory compliances, automation, process
re-engineering, code of ethics, etc.

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